Podcast episode (Freedom through Passive Income) by Flip and Danny explaining how, under a 2020 SEC rule change, passing certain securities exams (notably the Series 65) can qualify someone as an accredited investor for under $200 (exam fee only). They compare the exam route to the traditional income/net-worth benchmarks and encourage joining their investor club for access to deals. The tone is conversational and promotional toward their investor community.
Questions this video answers
Series 65
About $187 (noting fees vary and study materials are extra)
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.
Podcast, which is called Freedom through Passive Income.
That is correct again. You're gonna miss it one of these times.
Oh, no. Oh, no, no, no.
Welcome to another episode. This episode is called Becoming an Accredited investor for under $200.
Crazy.
Crazy.
Wow.
But now you also get these Ginsu stick knives. But no, it's always in all seriousness, how to become an accredited investor for under $200.
Yeah.
And actually, when I saw this title, I'm like, oh, Danny, what are you talking about? Let's see what this episode is going to be about. Okay, but so an accredited investor. So how to be an accredited investor. Golly, can't even speak. You earn $200,000 a year or. And expected to make that over the next couple years. Or you're married and you make $300,000 a year. And expected to make that over the next couple years. But during COVID they changed.
Yeah. But also a million dollars in assets.
Oh, sorry. Or a million dollars in assets. I'm sorry, I forgot the third one.
Minus your primary residence.
Minus your primary residence.
Yes. So that's the general definition that is widely known about how to be an accredited investor is to hit those income benchmarks. Right. And so we've talked about this in a previous video of that definition that is all over the place. You look up how to be an accredited investor, that's what you're going to find. Here's what you might not find. And we did talk about this during that other episode. So it teaches you it might be a good idea to go and backtrack if you're new to our episodes. But we talked about. In August 26th of 2020, the SEC passed some new rules about how to become an accredited investor. And there was multiple different things. Things in there. You have to watch the episode to get them all. But the one that we're going to talk about today is how you can get accredited for under $200. This isn't a scam. This isn't a bait and switch. This isn't anything you can literally get accredited for under $200.
And you don't get the steak knives.
Here's how you do it. In that new rule that was passed, you can have a Series 7 license, a Series 82 license, or a Series 65 license, and that qualifies you as an accredited investor.
And one of them, not all three.
Exactly.
Right.
Yeah. So the license, it's going to qualify you to have a securities license, the Series 82 qualifies you to be a private securities offering representative. Series 65 qualifies you to be an investment advisor if you are one of those three things. The SEC now sees you as an accredited investor. So take one of the exams. Now, there's one specific exam we like best. Why is that, Flippy?
Well, there's a number of reasons why we like that one best. Number one is the Series 7 and 82 require a prerequisite exam, and you have to pass that. It's through. And it's from the securities industry essentials.
Yep. That's the exam you have to take before you take the Series 7.
Before you can even take that.
Yep.
Now, how to describe this? So I was in a room and the guy who was talking about the class said something about the Series 7 exam. And somebody said, oh, I. I took that and I passed that. And the guy stopped and said, you have the Series 7. I'm impressed. Just that alone said, oh, I'm not going to be taking the series. So there, you know, it already has lore of it being difficult to get and that's to become, you know, like you said, qualifies you to have a securities license.
Yes.
That's like the. Out of the 7, 82 and 65. That's like. That's up here. Yep. The other thing is that the Series 65 does not require the prerequisite exam.
That's correct.
And you can take the exam for under $200.
That's right. I think I saw like 187 was the cost of the exam or something. I looked it up just so that I could be able to. I was like, just say under 200. Because then depends on when you watch this video as to how much the exam costs. And this doesn't count. Like your books or study material, your practice exams, things like that. Obviously you're going to have to like, you know, put a little bit more investment in it. But to take the exam to actually pass and then therefore be accredited is less than $200. So for those people that I've been on the phone with and said, I'm not accredited yet, you know, it's much more difficult to accumulate that million dollars in assets minus your personal residence and, or earn $200,000 a year as an individual or $300,000 a year as a couple, it's. It's much harder to accomplish that than it is to take a test and therefore be qualified as an accredited investor. And then the world opens up to you, because the accredited investors have some of the sweetest investments. But you have to be accredited to get involved. Because the SEC says, hey, you are knowledgeable enough, in our opinion, to be able to invest in these opportunities and understand the risk involved with them. So if you're one of those people that I've been really wanting to get into the accredited scene, you have to meet one of the benchmarks. This one happens to be the easiest.
Yeah, this one's super easy.
Yep.
I mean, super easy to get. I'm not saying that exam. Super easy. Don't get me wrong there. I don't know that. I'm just saying it's super easy to get into it.
Yep. So if you want to look more into that, visit the FINRA website for more info. Finra, that's it. We just want to invite more people into these investments. Now, not all of our investments require accreditation. That's why we say get involved in our investor club. Because if you're not accredited, we can't publicly advertise. We have to know you. We have to have a substantive relationship. That means you have to be in our investor club. We have to have had a conversation. So we always tell you, come on, join the investor club. Because non accredited investors do have opportunities that we will give you to invest. You just have to be in our inner circle to get them.
Did you ever have the Ginsu steak nose? It slices, it dices. We hope that you enjoyed this episode. Make sure you head on over to our website freedomcapitalinvestments.com to join our investor club.
Yes.
Make sure you're hanging out with a gang or on Facebook, LinkedIn and all the other places. And oh, you're hitting the like button. Not if you're driving. Don't do that. But if you're not driving, hit the like button. And you're gonna hit the like button.
Because this is a pretty cool tip that you probably aren't gonna hear anywhere else. Just saying that's pretty cool.
So hit that like button. But we like to end all of our episodes with Invest Smart Live Happy. Bye bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.
